Insider Monkey’s analysis names Tesla the better stock buy than Rivian: Tesla has more than $40 billion in cash and generated cash so far this year, while Rivian lost over $3 billion on less than $6 billion in revenue over the past year.
Rivian’s management expects its automotive segment to reach gross profit by year-end; the broader company already has gross profit, helped by software and services. Its smaller, cheaper R2 SUV has attracted more demand than expected, but automotive gross profit would not mean the company is profitable overall. On Sept. 23, Rivian recalled nearly 99,000 vehicles over a rearview-camera fault; the fix is delivered over the air.
The analysis estimates Tesla’s value at about $1.5 trillion, compared with Rivian’s roughly $22 billion. It says Tesla’s share price, at several hundred times earnings, assumes its robotaxi and humanoid-robot businesses succeed, while its automotive margins have weakened.
